JUDGMENT - Appellants are all accused in various crimes registered by the Kancharapalem Police Station, Visakhapatnam for the alleged offences punishable under Sections 3 and 5 of the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 (for short, 'the Act') and under Sections 406, 420 and 120-B of the Indian Penal Code, 1860 and also under Section 56 of the Chit Fund Act, 1971. As their properties were attached by the Special Judge to try APPDEF Cases-cum-Metropolitan Sessions Judge, Visakhapatnam to try under the Act, they filed an application in Crl.M.P.No.454 of 2006 before the said Court seeking permission to sell A to E schedule properties under Section 10 of the Act and also to empower and direct the District Legal Services Authority or appoint an advocate-commissioner to supervise the proceedings by giving directions from time to time. The learned Special Judge having heard the learned counsel for the appellants and the State and also the depositors, who are arrayed as respondent Nos.3 to 7 herein dismissed the said application on 26-09-2007 holding that the said application is not maintainable. Questioning the said order, this appeal has been filed under Section 11 of the Act. 2. Heard learned counsel for the appellants and learned Additional Public Prosecutor. 3. Before dealing with the submissions made by the learned counsel on either side it is necessary to refer to the history behind the case that led to the filing of the present reports before the police by the depositors. The brief history of the case is as follows-- (i) The appellants started V.R. Chits and Investments Private Limited, V.R. Educational Society and V.R. Medicinal & Aromatical Plantations Limited and the first two companies were registered in 2000 and the third company was registered in 2002. They organized the chits for Rs.25,000/- and Rs.50,000/- groups and also collected deposits by offering exorbitant rate of interest varying from 14% to 21% per annum. The innocent public who got attracted to the rate of interest started depositing their money in lakhs of rupees since March, 2000. Initially the appellants paid the interest regularly to gain trust and confidence of the depositors and thus collected deposits to a tune of Rs.27,31,50,402/- by the end of February, 2005. In lieu thereof, the appellants gave promissory notes, bonds, receipts etc., to the depositors including respondent Nos.3 to 7 in the name of the above three companies. Initially the appellants paid the interest regularly to gain trust and confidence of the depositors and thus collected deposits to a tune of Rs.27,31,50,402/- by the end of February, 2005. In lieu thereof, the appellants gave promissory notes, bonds, receipts etc., to the depositors including respondent Nos.3 to 7 in the name of the above three companies. The said amount collected from the innocent public by way of deposits was invested in the Real Estate business and acquired immovable and movable properties in Visakhapatnam, Vizianagaram, East Godavari and Chittoor Districts. After making the said investments, with the only intention to cheat the general public, the appellants defaulted in payment of interest amount as well as the principal amount due by them from November, 2004 onwards to the depositors numbering about 1986 as on 05-10-2007. As the depositors were made to run from pillar to post to get back the interest amount as well as the principal amount and the same not being paid, some of the depositors i.e. the respondent Nos.3 to 7 gave reports to the police bringing out the said default, cheating, misappropriation etc., and accordingly Kancharapalem Police on the basis of the said reports registered cases in Crime Nos.21, 355, 356, 359 and 361 of 2005 for the alleged offences punishable under Sections under Sections 3 and 5 of the Act and under Sections 406, 420 and 120-B of IPC and also under Section 56 of the Chit Fund Act, 1971. During the course of investigation some of the immovable properties situated in Vizianagaram and Visakhapatnam were identified and accordingly a letter was addressed to the competent authority appointed under Section 4 of the Act i.e. the Director General of Police, C.I.D. with a request to pass an ad-interim order attaching the properties alleged to have been procured either in the name of the financial establishments i.e. the three companies or in the name of the appellants from and out of the deposits collected from the financial establishments. (ii) On the basis of the recommendations made by the competent authority, the Government of Andhra Pradesh Home Department issued G.O.Ms.No.51 dated 17- 03-2006 passing an ad interim order attaching the properties that were mentioned in the report furnished by the competent authority. (ii) On the basis of the recommendations made by the competent authority, the Government of Andhra Pradesh Home Department issued G.O.Ms.No.51 dated 17- 03-2006 passing an ad interim order attaching the properties that were mentioned in the report furnished by the competent authority. A copy of the said G.O. was served on the appellants as well as on the officials concerned i.e. the Additional Director General of Police, C.B.C.I.D., and Kancharapalem Police etc., As the said order of attachment passed by the Government vide G.O.Ms.No.51 is to be made absolute, a petition under Section 4(3) of the Act was filed before the Special Court within the time provided for i.e. 15 days. (iii) It appears during the course of further investigation some more immovable properties, which stood in the name of the appellants situated at Chandragiri of Chittoor District, Kakinada of East Godavari District and some other buildings situated at Visakhapatnam city which are under mortgage to the State Bank of India, Industrial Estate Branch, Visakhapatnam etc., were also seized during the course of search of the premises of appellant companies on 17- 04-2006. As per the letter of the competent authority, again the Government of A.P. vide G.O.Ms.No.236 dated 25-09-2006 passed an ad interim order under Section 4(3) of the Act and thereafter an application was filed before the Special Court, to make the said order absolute. In the said application, the Special Court issued notices to the appellants and the matters are thus pending before the Special Court. At that juncture, the appellants have come forward and filed Crl.M.P.No.454 of 2006 seeking permission of the Special Court to sell the properties attached vide G.O.Ms.No.51 and 236 dated 17-03-2006 and 25-09-1996 respectively and also to empower and direct the District Legal Services Authority or appoint an advocate-commissioner to supervise the proceedings by giving proper instructions from time to time. As stated supra, the said application was dismissed by the Special Court holding that the said application is not maintainable. 4. Instances have come to the notice of the State Government, wherein a number of unscrupulous financial establishments in the State are cheating innocent, gullible depositors by offering very attractive rates of interest, collecting huge deposits and then vanishing suddenly. The depositors are being cheated and are put to grave hardship by losing their hard-earned savings. 4. Instances have come to the notice of the State Government, wherein a number of unscrupulous financial establishments in the State are cheating innocent, gullible depositors by offering very attractive rates of interest, collecting huge deposits and then vanishing suddenly. The depositors are being cheated and are put to grave hardship by losing their hard-earned savings. To curb and control the said menace, the Government of Andhra Pradesh decided to legislate a law for protecting the interests of depositors of financial establishments in the State and the matters connected therewith or incidental thereto. In that context, the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 was promulgated and it came into force with effect from 01-11-1999. As and when an offence of this nature is detected or investigated into it shall only be tried by the Special Court constituted under Section 6 of the said Act. Sub-section (4) of Section 6 of the Act empowers the Special Court to pass any order or issue a direction as may be necessary for the equitable distribution among the depositors of the money realized from out of the property attached. It is true that in the said provision of law i.e. sub-section (4) of Section 6 of the Act the words i.e. used "the Special Court shall, on an application by the competent authority" clearly envisage that the application shall only be filed by the competent authority but not by any individual person. In my considered view such a narrow understanding would defeat the very purpose for which the said Act has been promulgated. 5. As the properties will be under interim attachment as provided for under Section 3 of the Act normally the competent authority files an application requesting the Court to pass appropriate orders with regard to the equitable distribution among the depositors of money realized from out of the properties attached. In my considered view it cannot be said that such an application has to be filed only by a competent authority and none else. When once the properties are under attachment and they are before the Court for the said order of attachment to be made absolute, it is always open even for the Court to pass appropriate orders in the absence of the application filed by the competent authority keeping the interests of the depositors in mind. When once the properties are under attachment and they are before the Court for the said order of attachment to be made absolute, it is always open even for the Court to pass appropriate orders in the absence of the application filed by the competent authority keeping the interests of the depositors in mind. Similarly the depositors also may come forward and file an application requesting the Special Court to pass appropriate orders so that the properties under attachment are sold and the depositors are paid. In fact, in those cases, if there is a resistance by the appellants, the Court may pass appropriate orders why because it is not known as to whether the accused are really guilty or not and whether the said properties are liable to be sold or not at a later stage. In the case on hand, in fact, the appellants, who are facing trial for the offence punishable under Sections 3 and 5 of the Act and other offences punishable under IPC on their own have come forward and filed the present application stating that the properties so attached be sold and the amount realized may be paid to the creditors i.e. the depositors. Giving a narrow meaning to the wording used in sub-section (4) of Section 6 of the Act would not subserve the very purpose for which the said Act has been introduced. As stated supra, the very purpose of bringing such a law is to safeguard the interests and restore the confidence of innocent depositors. 6. Accordingly, the criminal appeal is allowed and the order of the Special Judge is set aside and the competent authority is hereby directed to make arrangements to sell the properties which are under attachment vide G.O.Ms.Nos.56 and 235 dated 17-03-2006 and 25-09-2006 respectively by way of public auction and the sale proceeds be distributed among the respondents 3 to 7 and other depositors with interest, if any, if they are entitled. The said exercise shall be completed within a period of three months from the date of receipt of a copy of the order. However, it is made clear that from this order, it shall not be inferred that this Court has given a finding about the guilt or otherwise of the appellants. The Special Court can try them for the offences with which they have been charged in accordance with law.